American economic policy is a lie mandated by American political policy. One result (and evidence) of that, is the massive stocking-up on guns and ammo by Federal non-military and non-law enforcement departments of which we’ve been hearing. The government is scared pea green of the result when the mass of the public finally realizes what is happening.

What’s happening is simple and absolutely not discussed. It is also the underlying truth that is forcing both Democrats and Republicans in Washington to demand ‘immigration reform’ which is really amnesty plus open borders, while knowing the public hates that. The reason for all this is an awful secret for sound political reasons and the secret is this: America (and Europe) have priced themselves out of the world’s markets. American and European labor have become too expensive. And the politicians are responsible.

Back when the U.S. and Europe were the sole sources for much that people wanted, prices could be set high enough to provide labor a premium. The corrupt linage between unionized labor and government isolated the price of labor from market forces, political promises drove it higher. Now though, while U.S. and European labor cost too much, its products are no longer a monopoly in the world; it must compete in the market … and it has become the high cost supplier that can no longer compete.

Americans and Europeans now buy from foreigners at lower prices and their industries have fled, replaced labor with machines or disappeared. Services are sold domestically instead. And the truly horrifying prospect is, as service labor in North America and Europe are as overpriced as industrial labor, it too is about to be replaced with machines as well as whatever cheap foreign labor can be lured across the U.S. borders.

From another angle: The post-2008 unemployment is not only permanent, it will increase as employers find new ways to eliminate human workers. One massive service employer has been retail. Stores are being replaced by the Internet and store employees and restaurant workers are being replaced by apps providing purchase and payment via handheld devices. New machines can accept your burger order and produce up to 350 uniform burgers per hour, then take your payment. The future of American and European labor is a long term surplus that will drive the price of labor back down to world levels so that it can compete again. The world level is rising, slowly. Too slowly to offset the impending decline.

The single solution that has protected American and European workers in the past, has been the explosive development of new technologies for which high prices could be demanded. But that is now foreclosed by government policies saving energy and protecting the environment since those reduce such development or drive it too, overseas.

The American worker has overpriced himself and the same politicians that led him to do so are now bringing in cheaper competitors to replace him. They are right to fear his realization …

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About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)